In a reply to a question asked on Bitcoin in the Parliament on Monday, Finance Minister Nirmala Sitharaman said that central government does not collect any data on bitcoin transactions. It also said that there is no proposal to recognize bitcoin as a currency in the country.
Whether the government has any proposal to recognize Bitcoin as a currency in the country, the Finance Minister said “No, sir”.
The response was given the form of a written reply in the Lok Sabha on a question on cryptocurrency. A legislation seeking regulation of cryptocurrency will be discussed in the winter session of Parliament, which began on Monday.
This comes as the government plans to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in the ongoing Winter Session of Parliament. The Bill seeks to ban all but a few private cryptocurrencies to promote underlying technologies while allowing an official digital currency by RBI.
The government plans to allow only certain cryptocurrencies to promote the underlying technology and its uses, according to a legislative agenda for the Winter Session.
It should be noted that Bitcoin was introduced in 2008 by an unidentified group of programmers. The digital currency is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verify other users’ transactions. They receive Bitcoins in exchange.